HST on Exports

There are complex rules that apply on the application of GST/HST on exports of goods and services from Canada.

Goods and services that are ordinarily GST/HST taxable supplies may be zero-rated if they are exported or provided outside of Canada. This means that you do not charge the GST/HST on taxable sales if you deliver the goods, perform the service, or make the property available to a purchaser outside Canada.

When a purchaser takes delivery of the goods or receives the service in Canada it is generally subject to GST/HST unless specific conditions are satisfied.

A supplier does not charge the GST/HST on services performed totally outside Canada, or on services that relate to real property situated outside Canada.

There are certain services provided to a non-resident that may be zero-rated, such as:

certain advisory, professional, or consulting services;

advertising services to an unregistered non-resident person;

advisory, consulting, or research services to help a non-resident person establish a residence or business in Canada;

services and parts for goods or real property acquired to fulfill an obligation under warranty for an unregistered non-resident person;

custodial or nominee services for the non-resident person’s securities or precious metals;

training services to an unregistered non-resident person (other than an individual) to teach non-resident individuals or to give examinations for courses leading to certificates, diplomas, licences, or similar documents, or classes or licence ratings that attest to the individuals’ competence or to give an exam to practise or perform a trade or vocation;

services to an unregistered non-resident person of destroying or discarding goods, or the services of dismantling goods for the purpose of exporting them;

services to an unregistered non-resident person of testing or inspecting goods acquired or brought into Canada for this service and the goods are to be destroyed or discarded in the course of providing the service or on its completion;

services of acting as an agent for a non-resident person or services of arranging for, procuring, or soliciting orders for supplies by or to the person when the service relates to a zero-rated property or service, or if the supply to or by the non-resident person is made outside Canada; and

services made in Canada to a non-resident person by electronic means, may be zero-rated.

It may be possible to claim input tax credits or an HST Rebate to recover the GST/HST you paid or owe on purchases and expenses related to your zero-rated goods and services.